2021 tankless water heater tax credit for home

Forum|Forum|4 years ago
April 5, 2022
2 replies
14 views

taxpayer purchased tankless water heater for $800 in 2021. how much is his tax credit?

In sec 38.2 - nonbusiness energy property credit (form 5695), which line do I enter? "energy-efficient building property" or "qualified furnace or hot water boiler"?

Thanks.

Lacerte Tax

This topic has been closed for replies.

Best answer by qbteachmt

If the water heater is for Hot Water, it's an Appliance. Not a Furnace System (boiler) water heater. Electrical tankless Appliances don't qualify. Oil, Gas, Propane, Heat Pump. The manufacturer should be providing a certificate, if this qualifies.

PhoebeRoberts

Intuit Community Champion

https://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits

H

hgtcAuthor

Level 5

Thanks for the link. Somehow, I could not find tankless water heater under "non-solar water heater"?

Should I enter the $800 cost under "energy efficient building property" section so that will get $300 tax credit?

sjrcpa

Level 15

EDIT: ~~Did you read what it says at the top of that page?~~ Looks like I can't read when I'm tired.

The more I know the more I don’t know.

qbteachmtAnswer

Level 15

If the water heater is for Hot Water, it's an Appliance. Not a Furnace System (boiler) water heater. Electrical tankless Appliances don't qualify. Oil, Gas, Propane, Heat Pump. The manufacturer should be providing a certificate, if this qualifies.

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